Spreadsheet Models for Managers


Getting Access to Spreadsheet Models for Managers


If Spreadsheet Models for Managersyou use Excel to model businesses, business processes, or business transactions, this course will change your life. You’ll learn how to create tools for yourself that will amaze even you. Unrestricted use of this material is available in two ways.

As a stand-alone Web site
It resides on your computer, and you can use it anywhere. No need for Internet access.
At this Web site
If you have access to the Internet whenever you want to view this material, you can purchase on-line access. Unlimited usage. I’m constantly making improvements and you’ll get them as soon as they’re available.

To Order On Line

Order "Spreadsheet Models for Managers, on-line edition, one month" by credit card, for USD 69.95 each, using our secure server, and receive download instructions by return email.
Order "Spreadsheet Models for Managers, on-line edition, three months" by credit card, for USD 199.00 each, using our secure server, and receive download instructions by return email.
Order "Spreadsheet Models for Managers, downloadable hyperbook edition" by credit card, for USD 199.00 each, using our secure server, and receive download instructions by return email.

To Order by Mail

Make your check payable to Chaco Canyon Consulting, for the amount indicated:
  • For the download: USD 199.00
  • For access online for three months: USD 199.00
  • For access online for one month: USD 69.95
And send it to:
Chaco Canyon Consulting
700 Huron Avenue, Suite 19C
Cambridge, MA 02138

To use the course software you’ll need some other applications, which you very probably already have. By placing your order, you’re confirming that you have the software you need, as described on this site.

Spreadsheet Models for Managers

Future value 9/4
Session Links
  • You receive $100. Prevailing interest rate is 4% per year, simple interest. What is the future value of the asset in one year?
    • Interest = Principal * Rate * Time
    • Principal + Interest = Principal + Principal * Rate * Time
      = Principal * (1 + Rate * Time)
      = 100 * (1 + 4% * 1)
      = 104
  • You receive $100 per month for one year. The interest rate is 4% per year, compounded monthly. What is the future value of the asset in one year?
    • 100 * (1 + 4%/12 )12
      + 100 * (1 + 4%/12 )11
      + 100 * (1 + 4%/12 )10 + …

Here’s a simple example of how Future Value is computed. In the first example, we compute the future value of a single payment for one period. In the second, we compute the future value when the interest is compounded over 12 periods. Notice that the calculation in the second example is more complex. There is actually a fairly simple formula that captures this calculation quite neatly.

Last Modified: Wednesday, 27-Apr-2016 04:15:26 EDT

Nesting Worksheet Function Calls

Nesting invocations of worksheet functions can be a bit tricky, because nested function calls are difficult to think about. Sometimes, in developing a spreadsheet model, we can gain clarity by avoiding nesting. That is, while we’re still thinking about how to approach a modeling problem, we intentionally choose to avoid nesting function calls. After we understand the problem better — and only then — we might go back and replace what we’ve done with a more compact version that exploits nesting. In addition to producing forms that are easier to think about, this practice of developing a simpler form first has another benefit. It enables us to examine intermediate values more easily, which enables us to confirm that the calculations we’re performing make sense.

Some feel that building something that you intend to replace is a waste of effort — that it’s far easier to build things in final form from the start. When that approach works, it is faster and more efficient. But when we think we’re likely to make mistakes, the “slower” way is faster.

Do You Know What a Dynamic Model Is?

In years past, we’ve learned that what makes a model dynamic — as opposed to static — can be difficult to grasp. If you have some doubts yourself, and you haven’t yet looked at the reading on Models vs. Tools, we believe that you will find it helpful.